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The group’s largest company pension fund in the United Kingdom is managed by BKW Trustee Company
Limited. The management of the Trust company is partly appointed by Boskalis and partly elected by plan
participants. The investment policy is geared to the fact that it is a closed arrangement relating primarily to
fixed income. Pension law in the United Kingdom includes the requirement to index pension plans. In 2015
the required tri-annual valuation was conducted, which determined the required annual contributions to this
pension fund. There is no requirement to immediately and fully cover an existing deficit in this pension plan.
The expected contribution to this fund for the coming year and for the ongoing review period amounted to
GBP 1.2 million (2015: GBP 1.2 million) and GBP 2.1 million (2015: GBP 3.3 million) respectively.
Settlement and termination of two other pension plans
During 2016 two contracts with Dutch insured pension plans reached the end of their contract terms and
were not renewed. The plans for the respective staff were transferred, one to PGB and the other to an
industry-wide pension fund. Accrued pension rights within these plans will remain with the pension insurers.
This resulted in a settlement gain of EUR 6.7 million relating to one - and a curtailment gain of
EUR 1.5 million for the other pension plan transferred.
Following the changes in the pension plans disclosed above, the contribution of the Group’s European
harbor towage activities to the new joint venture KOTUG SMIT Towage ) and the sale of SMIT
Amandla Marine ( ), the remaining balance of the net defined benefit obligation mainly relates
to closed pension plans. The net defined benefit obligation of the aforementioned pension plans in the
United Kingdom mainly are determined by expected future inflation (2016: 3.55%; 2015: 3.10%). The
other defined pension plan is a closed insured pension plan for which future cash flows are determined on
the basis of Group entitlement to excess returns realized by the insurance company and annual guarantee
costs provided for in the balance sheet. Both of these results continue to be recognized through the
statement of other comprehensive income. Therefore the expected impact of these remaining defined benefit
pension plans on future statements of profit or loss is not significant.
The disclosures regarding 2015 mainly related to the former defined benefit plans of the Group, that were
settled and converted into defined contribution plans and were no longer included in the following
disclosures for 2016: the composition of plan assets; the accumulated actuarial gain and losses; and the
sensitivity for changes in the applied assumptions.
The composition of plan assets, excluding the defined benefit plans that were settled in 2016, is as follows:
31 DECEMBER
2016 2015
Actuarial valuation of the inseparable share in PGB plan assets - 527,999
Other pension plans:
Equities 21,259 34,251
Bonds 129,536 170,691
Real estate 396 400
Investments quoted in active markets 151,191 205,342
Cash (non-interest-bearing) 1,226 1,218
Other receivables and payables 779 235
Unquoted investments 2,005 1,453
TOTAL PLAN ASSETS 153,196 734,794
As at 31 December 2016 and 31 December 2015 the plan assets did not include shares issued by Royal
Boskalis Westminster N.V.
Pension funds periodically perform asset liability management studies to assess the matching of investment
assets with the amount and duration of pension liabilities. Based on the outcome of these studies the nature,
mix and duration of assets are regularly adjusted. The average duration of the obligations of the pension
plans is about 21 years (2015: 21 years).
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ANNUAL REPORT 2016 – BOSKALIS
FINANCIAL STATEMENTS 2016